Who collects customs duties?
Customs are the prerogative of the state government. If charged by a local lord or prelate such duties are not official and are in breach of the
government's franchise on customs.
Where are customs duties collected?
Unlike tolls which are collected at bridges, fords, city gates and other like points along trade routes customs duties are collected at only a few key
locations along significant trade routes. The following are the most common locations for customs stations.
- Border Towns and or Villages
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These stations would be placed in villages or towns close to a border in order to catch goods coming into or going out of the kingdom prior
to them being caught with the goods already moving about within the kingdoms.
- Commercial Ports
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All major ports would have a customs official present. These ports may be located along coastlines or major rivers. In addition, some
kingdoms would also maintain officials at minor ports also.
How are customs duties collected?
Each customs station will be controlled by a governmental official, the customs agent and his assistants. All customs officials are royal officers
appointed by the king or the exchequer depending on the amount of control the crown exerts over its lower officials. In some kingdoms such as Rethem and
the Thardic Republic the government may even farm out the customs collected at specific location instead of placing and paying an official. In this way
the government ensures it receives a set payment and the individual is responsible for collecting it and paying it to the crown. However, such a system
could lead to excess customs rates so the individual paying the farm ensures themselves a profit out of the deal. Other kingdoms prefer to control the
flow of trade across their borders and through their ports in a more predicable manner and thus promote a concussive atmosphere for trade and the
movement of goods through their kingdoms.
Why are customs duties collected?
The collection of customs on imports and exports is a vital component of any government's economic base and a means of controlling the flow of trade
into and out of their kingdom. The following are key reasons for collecting customs.
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Customs duties are used to fund significant elements and organizations within a government. The primary element being the army and military
operation. It is not unknown for kingdoms like Trierzon or Shorkyne to make huge loans on their customs receipts in order to fund the wars along
their borders.
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If a kingdom specialized in a specific commodity such as wool it would usually charge a moderate to high export fee on the item in order to profit
from the demand for the item. Other items of low demand or supply would have a lower duty so as to foster exportation of those goods.
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The opposite happens with imported goods. If a kingdoms manufactures a good like linen clothes it would charge a higher duty on imported linens so
as to make its own goods more desirable within local markets since the merchant would add the high duty to the price of the goods he is bring in for
sale. However, if the kingdom has a need for goods that are in short supply they would charge a lower duty to ensure a steady flow of goods for
their subjects.
What are customs duties collected on?
Customs can be collected on just about anything. However, the common practice is to identify key commodities for special treatment. The Economic Map of
Hârn is a good indicator of what a government may decide to focus on. Kanday for example would have above average duties on wool, and maybe wool
cloth, linen goods and vellum goods in order to profit from their outside demand. For exports they would be charging above average duties on the same
good in order to deter any local competition. On the other hand, Kanday may charge below average duties on dyes, tannins and ores; all items they are in
short supply of.
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